The Role of Globalization of The Supply Chain on Organizational Performance: The Case of Faffa Food S.Co & Newzealand Milk Products Ethiopia S.Co (Anchor Milk)
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Date
2022-01
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Addis Ababa University
Abstract
The globalization of supply chains has always been simultaneously an opportunity and an issue for manufacturing companies. Increasing competitive pressures force them to expand operations beyond national boundaries in order to source materials and components, manufacture products and sell their products. Little is known in the literature concerning the role globalization of a supply chain has on developing countries. The study examined two organizations in Ethiopia, Faffa Foods S.CO and New Zealand Milk Products Ethiopia S.CO (Anchor Milk) both engaged in the processed food and drink sector. The objective of the study was to assess to what extent globalized supply chain practices like global sourcing, globalization of technology and global sales, are being implemented, and the role these practices have on the organizational performance of the two (2) companies mentioned above. The Findings show that Global sourcing is practiced to a great extent in both companies, and it has a positive effect on the organizational performance of both companies, while Global sales has a positive effect on Faffa and a negative effect on Anchor. The researcher recommends that Faffa should enhance its global sales practices to get more benefit while optimizing it global sourcing practice, for NZMPE the researcher recommends it strategize its global sourcing and global sales practices for an optimum outcome.
Key Words: Globalization of Supply, Global Sourcing, Globalization of Technology, Organizational Performance